Economy & Policy News

A salary hike often fails to boost savings because spending rises alongside income, a trend called lifestyle inflation. Many people start buying premium products or eating out more, which eats into their extra earnings. This habit makes it harder to reach long-term financial goals like retirement or buying a home.

US stocks face a volatile week as investors brace for October CPI inflation data and key tech earnings following a sharp AI-led selloff. The Nasdaq Composite closed Thursday nearly 12% below its October 6 record high. Many tech shares fell, though the S&P 500 still showed gains for 2026 overall.

Indian stocks surged 10% last week after a long period of underperformance. Market experts say oil prices must fall to $70-80 per barrel to sustain this rally. Lower energy costs would help control inflation and boost the rupee. Meanwhile, corporate earnings are expected to grow strongly over the coming years.

The Reserve Bank of India clarified that existing CTS cheque books remain valid from January 1, 2027. The bank dismissed viral social media claims about mandatory replacements. "It is clarified that at present Reserve Bank of India is not introducing any such measures," the central bank said on November 7.

Sunil Singhania of Abakkus Asset Manager expects the Nifty to underperform the broader market. He said, "40-50% of the companies will not even grow in line with the GDP." Many traditional sectors face growth limits, so he suggests looking at hospitals, capital market businesses, and specific platform companies instead.

Indian government bonds could rally further this week as lower oil prices and Treasury yields boost investor sentiment. A private-bank trader said, "Bond bulls have taken over the market for now, and we could see some more rally, but volatility would be the risk factor." Inflation data remains the focus.

US employers added 165,000 jobs in October, pushing the unemployment rate down to 4.1 percent. While payrolls grew faster than expected, average hourly earnings rose 3.1 percent, staying below the 3.7 percent inflation rate. This robust report showed the Federal Reserve might hike interest rates during its December 8-9 meeting.

ICICI Securities issued a buy rating for Mahindra and Mahindra with a target price of Rs 3800. The firm noted that while margins fell slightly below expectations due to inflation, strong auto demand remains a positive factor. Management expects these cost pressures to ease significantly as the company moves toward FY28.

Banks across India will remain closed for six days between 9-15 November, according to the official RBI calendar. Public and private lenders like SBI and HDFC will shut their branches for regional festivals and weekends. However, customers can still use online banking and mobile apps for their urgent financial needs.

Samvat 2083 begins with Indian businesses feeling cautious optimism as the new year starts. Strong GST collections and festive demand showed economic resilience, but weak hiring and food inflation cloud the outlook. Sustained private investment and better corporate earnings will now determine if this growth finally creates more new jobs.